|Two Chinese companies interested for solar power plant on Cres Island|
|Author: CSEBA / SEEbiz / Jutarnji list|
|20th December 2018|
|ZAGREB - Two Chinese companies, Dongfang Electric International Corporation and Chinapower Sepco1, expressed interest to build solar power plant on island Cres. Dongfang offered 40 million kuna and Powerchina offered 70 million kuna (biggest offer).|
The 6.5 MW Orlec Trinket project will be the first non-integrated solar power plant in HEP's portfolio. HEP has developed nine building integrated solar power plants since 2014, which have been erected on the roof of its office buildings in Zagreb, Osijek (two), Split, Zadar, Dubrovnik, Šibenik, Čakovec and Opatija. This will also be the biggest solar power plant in Croatia (currently ranked first are 1 MW ones) with the average annual production of about 8.5 GWh (kWh m) covering electricity demand of about 2,000 households. The most important benefit of the power plant will be that it will prevent blackouts due to extreme consumption during the summer months.
- Chinese interest in such project is not surprising because their companies have large interest in infrastrucuture and energy projects in Croatia. Ports and railways are most attractive for Chinese investors. In energy they focus on renewable energy sources, namely solar and wind power plants, as this is a profitable business, and our islands are particularly suitable for solar power plants, Siniša Malus, communications manager of CSEBA, said for Jutarnji list.
He added that the Peljesac Bridge was certainly a trigger for the bravest appearances of Chinese companies.
The Crucial Moment - Croatia is finally recognized as a partner and as a destination that the Chinese want to invest, encouraged by the Peljesac Bridge and good political contacts since Prime Minister Plenkovic, who recently had a remarkably successful visit to China.
This year a large scale investments of Chinese companies came to Croatia.
Cnstruction of the Peljesac Bridge was the first EU-funded project won by a Chinese company in a public tender. By winning the contract, China has been given the opportunity to enter the EU market and participate in other major infrastructure projects to be largely financed with EU funds. Chinese investor recently bought a stake in the Port of Zadar, and it would initially invest 215 million (€29 million). China is also interested in investing in the Port of Rijeka in the northern Adriatic.
Croatian electrical equipment manufacturer Koncar Elektroindustrija and Chinese group XD Electric plan to invest 140 million kuna (18.9 million euro) in a joint project for the production of high-voltage equipment. Two companies signed an agreement to set up their joint venture, which will be based in Zagreb and will initially have about 50 employees. Electric Vehicle technology pioneer Rimac Automobili closes a 30 million Euro investment with Camel Group - Asia’s largest battery manufacturer. The Investment will be used to fund the launch of new products, extension of production capacity and global expansion of the companies.
Good political contacts are very important for doing business with China. In spring 2019, Croatia will host the next 16+1 General Summit of European leaders and PR China, when Prime Minister Li Keqiang will visit Croatia. Croatian Prime Minister Andrej Plenkovic, who recently met with Chinese counterpart Li Keqiang, said the Croatia-China relations have developed in a healthy and stable manner, bilateral economic, trade and investment cooperation has been pragmatic and efficient.
Chinese companies are also interested in investing in the Zone Crno near Zadar, where there could be an electric vehicle battery factory, interested in them and the Brodarski Institute, an upgrade of the Zadar Airport, and will certainly appear in tenders for the reconstruction of the railway infrastructure. In addition to the Zagreb - Rijeka lowway (project of about HRK 7.4bn), they have already announced a bid for the Zabok - Zagreb and Vinkovci - Vukovar bidding, but their bids were among the most expensive.